Hyderabad Real Estate Experiences 38% Decline in New Supply in Q3 2025
Hyderabad's housing market has experienced a significant downturn in the third quarter of 2025, with a 38% decline in new supply and an 11% drop in sales compared to the same period last year. According to the latest report from Anarock Group, the city added approximately 8,630 units in Q3 2025, down from 13,890 units in Q3 2024.
The decline in new supply is not just a year-on-year trend but also a quarter-on-quarter drop. In Q2 2025, Hyderabad saw 11,105 new residential launches, which fell to 8,630 units in Q3 2025, representing a 22% decrease.
Interestingly, 87% of the new supply added in Q3 2025 was in the premium, luxury, and ultra-luxury segments, priced above Rs 80 lakh. This indicates a shift towards high-end developments, possibly driven by the preferences of wealthier buyers and the economic conditions affecting the mid and lower segments.
Sales in the third quarter also saw a decline, with 11,035 units sold, down from 12,735 units in the same period last year. However, there was a marginal 2% increase in sales compared to the second quarter of 2025, which might suggest a slight stabilization in the market.
The trend in Hyderabad is part of a broader slowdown across India's top seven cities, including the National Capital Region (NCR), Mumbai Metropolitan Region (MMR), Bengaluru, Pune, Chennai, and Kolkata. According to Anarock's research, these cities collectively saw a 9% annual decline in housing sales, with approximately 97,080 units sold in Q3 2025 compared to 1,07,060 units in Q3 2024.
Anuj Puri, Chairman of Anarock Group, commented on the data, noting that despite the decline, sales continued to outstrip new supply, indicating a relatively healthy market. He stated, 'Residential demand in India has remained resilient, supported by rising incomes, urbanization, and aspirational homeownership sentiment. However, the sector faces challenges such as affordability, costs, and uneven demand across different markets.'
The report also highlighted the city-wise absorption of units in Q3 2025 and Q3 2024. NCR saw a slight decline from 15,570 units in Q3 2024 to 13,920 units in Q3 2025. MMR experienced a more significant drop from 36,195 units to 30,260 units. Bengaluru and Pune also saw slight declines, while Chennai and Kolkata saw modest increases in unit sales.
Despite the challenges, the real estate sector in Hyderabad and other major cities remains optimistic about future prospects, driven by ongoing urbanization and the growing middle class. However, addressing affordability and cost issues will be crucial for sustained growth in the housing market.
